Auto stocks surged in today’s session after Prime Minister Narendra Modi and US President Donald Trump officially confirmed the much-awaited India-US trade deal, which immediately reduced US tariffs on Indian goods from 25% to 18%. Reacting to the news, the Nifty Auto index pushed the Nifty Auto index to an intraday high of 28,095.85, marking a rise of about 5.03% from its previous close of 26,749.15.

Auto component manufacturers, which have 8% of the business exposed to the US, clocked the highest rise. Companies such as Bharat Forge jumped 7.36%, Tata Investment Corporation rose 6.83%, and Sona BLW Precision climbed 6.75%, while Motherson Sumi gained 5.14% and Uno Minda advanced 4.36%. 

OEMs also participated in the rally, with Mahindra and Mahindra rising 3.6%, Eicher Motors up 2.4%, TVS Motor gaining 2.29%, and Bajaj Auto adding 2.05%. 

Markets rejoice to US-India trade deal

Indian equity markets also opened on a strong note as investors welcomed the India–U.S. trade deal. The benchmark indices—the BSE Sensex and the NSE Nifty—surged up to 4.5% in opening trade amid broad-based buying across sectors.

The 30-share Sensex began the day at 85,323.20, up 3,656 points, or 4.47%, while the NSE Nifty jumped 1,220 points to open at the 26,308 level. In the broader markets, the Nifty MidCap 100 and the SmallCap also rallied 4% each. 

Indian auto Industry welcomes the deal

India’s automobile industry has welcomed the newly announced India–US trade deal, calling it a timely boost to export competitiveness, supply-chain integration and long-term investment sentiment amid global economic uncertainty. Mahindra Group CEO and Managing Director Dr Anish Shah said the immediate reduction in reciprocal tariffs on Indian exports from 50% to 18% marks a significant step forward in strengthening India–US trade and investment ties. He added that the commitment to progressively lower tariff and non-tariff barriers would help improve business confidence and support long-term investment planning.

TVS Motor Company Chairman Sudarshan Venu also noted that the tariff cut would enhance the competitiveness of Indian goods in the US market and reinforce confidence in long-term bilateral economic ties. He said the intent to address non-tariff barriers could deepen supply-chain integration, enable faster technology collaboration and attract investments into advanced manufacturing.